Question

Account Title	Debit		Credit
Cash	$	5,000
Accounts receivable		14,500
Office supplies		7,618
Trucks		191,000
Accumulated depreciation—Trucks			$	39,346
Land		47,000
Accounts payable				9,000
Interest payable				9,000
Long-term notes payable				42,000
K. Wilson, Capital				188,017
K. Wilson, Withdrawals		28,000
Trucking fees earned				122,000
Depreciation expense—Trucks		25,378
Salaries expense		64,956
Office supplies expense		14,000
Repairs expense—Trucks		11,911
Totals	$	409,363	$	409,363

  

Use the above adjusted trial balance to prepare Wilson Trucking Company’s classified balance sheet as of December 31, 2015.

Answer 1

Income Statement:
Revenue:
Truck fees earned			122000
Less: Expense
Depreciation expense		25378
Salaries expense		64956
office supplies expense		14000
Reairs expense		11911
Total Expense			116245
Net income			5755
Statement of Owner's equity:
Beginning Balance of capital			188017
Add: Net income			5755
			193772
Less: Withdrawals			28000
Ending balance of capital			165772
Balance Sheet:
Assets:
Current assets:
Cash			5000
Accounts receivable			14500
office supplies			7618
Total current assets				27118
Property plant and equipment
Land				47000
Trucks			191000
Less: Accumulated dep			39346	151654
Total Assets				225772
Liabilities:
Current liabilities:
Accounts payable			9000
Interest payable			9000
Total current liabilities				18000
Long term liabilities:
Long term note payable				42000
Owner's equity				165772
Total Liabilities and owner's equity				225772